‘Oil Fund’ is leaking
Norway’s "Oil Fund" lost billions betting against interest rates during the last three months of 2007—on top of many more billions in the stockmarket.
 The new guy on top of the Norwegian "Oil Fund", Yngve Slyngstad, is reportedly going to get paid well for his efforts. PHOTO: CHARLOTTE WIIG |
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The enormous pension fund, fuelled by Norway’s oil revenues, gave out its annual report today and the news was not good.
The Oil Fund, set up to generate money to support generations of Norwegian senior citizens, lost NOK 10bn (approximately USD 2bn) in the interest-rate market.
It also lost NOK 25bn (approximately USD 5bn) in the stockmarket, but this was reportedly in line with general market trends.
"This is the first time the active management (of funds) has resulted in a negative result," said Norwegian Central Bank Governer Svein Gjedrem.
Knut Kjær, the former head of the Oil Fund, resigned late last year. He was replaced by Yngve Slyngstad, who said at the time: "There won’t be any big changes in strategy."
Shortly after the Oil Fund released its miserable results, news came out about the new boss’s salary— he’s making five times as much as the Norwegian Prime Minister and four times as much as the head of the country’s central bank, says business newswire service E24.
His salary is reportedly NOK 5.7m (a little over USD 1m).
E24/Aftenposten English Web Desk
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